India Halts US Weapons Buys Amid Tariff Dispute
India Halts US Weapons Buys Amid Tariff Dispute

India Halts US Weapons Buys Amid Tariff Dispute

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India has suspended planned US weapons and aircraft purchases, including a $3.6 billion deal for Boeing P8I planes, in response to President Donald Trump's new 50% tariff on Indian goods linked to India's Russian oil imports. Defense Minister Rajnath Singh cancelled a scheduled visit to Washington, and defense procurements from US companies like General Dynamics and Lockheed Martin are on hold. Meanwhile, major US retailers such as Walmart, Amazon, Target, and Gap have halted orders from Indian textile exporters, who now face potential losses of $4-5 billion and a 40-50% drop in US-bound shipments. Indian exporters are under pressure to absorb the increased costs, while there is concern that US buyers may shift to suppliers in Bangladesh and Vietnam, where tariffs are lower. These developments have heightened tensions in US-India trade and defense relations, although dialogue and intelligence-sharing continue. India has condemned the tariffs as unfair and highlighted perceived Western hypocrisy regarding trade with Russia.

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